The Centre on Wednesday night reduced excise duty on diesel and petrol in the wake of rising protests across the country. Diesel has been reduced by Rs 10 per litter and petrol by Rs 5 per litter. With the reduction in duty, petrol will be reduced by Rs 6 and 30 paise per litre and Rs 12.27 for diesel. This is a relief measure for fuel users. With the Centre reducing excise duty, there is a strong demand for states to reduce taxes. The Central Government itself had put forward such a demand. But the ruling states, which are ruled by opposition parties, rejected the request. The Kerala government is among them. The question is why the state should not reduce the fuel tax by a single paise on its own in five years. This position of the state government led to widespread protests. Opposition parties have stated they will contest in the by-elections.

According to officials, the rise in crude oil prices is due to the rise in crude oil prices in the international oil market. Examination of the pricing criteria shows that this argument is not valid. The reason for the rise in prices is the unjustified taxes imposed by the Central and State Governments on petroleum products. The day when the pricing power was completely handed over to the oil companies is a hoax between the oil companies and the government. Petroleum products were also exempted from GST for looting. The price of a cylinder of gas is now around Rs 1000. The price of a commercial cylinder has crossed Rs 2,000. Kerosene price has gone up to Rs 54 per liter.

There are those who believe that the Centre's reduction in fuel prices is eyeing some important Assembly elections to be held early next year. The setbacks in the recent by-elections may have prompted the Centre to take this step. It is true that you learn a lesson when you get beaten. The economy and the people alike are suffering under the adverse conditions created by the high prices of fuels. When inflation is evident in all sectors. Only the Central and State Governments and the oil companies will benefit from this. The central government has received 88 per cent more revenue from petroleum products so far this year than the previous year. The state government also received significant additional revenue.

The state finance minister has already announced that Kerala does not intend to go that way as the Centre has reduced petrol and diesel prices. Everyone knows that the reason for the increase in fuel prices is the tax rates of the Central and State Governments. The state has a moral obligation to reduce at least one rupee here while the centre reduces ten rupees. People expect a decision that will provide at least some relief. Even a small concession will only enhance the image of the government. It is also futile that this will lead to irreparable leakage of government revenue. Because there are many ways to increase income.

The government can only look for new ways to reduce the revenue shortfall by slightly reducing fuel taxes. There are a number of public sector entities here that are burdening the government and the people alike and are only making losses. Even if adequate compensation is paid to the employees and they are closed down, the exchequer will get billions every year.

Look at the tax arrears owed to the government. Even if a part of them is collected, the reduction in fuel tax will reduce the revenue shortfall. Have any of the recommendations made by the expert committees been accepted to reduce the cost? Excessive dependence on fuel and alcohol is seen as an easy way to increase income.

When fuel prices are skyrocketing, think of the seven-member gang that roamed the countryside during the Covid period when life was at a standstill. It happened in the Pariyaram gram panchayats in Kannur district. When the source of income was opened after the Covid crisis was over, the first thing they did was to leave the stolen property at night with a letter on the doorstep of a house to return it to the owners. They returned Rs 1,91,500, more than four sovereigns of gold. The purity and goodness of the minds of these thieves can be seen in extraordinary deeds.

We know that even if we ask the Central and State Governments to give back to the people at least a small portion of the revenue collected through the sale of fuel at exorbitant rates, it will not happen. However, it is possible to make at least a slight reduction in the excess tax. The thieves in Pariyar are so generous when it comes to the stubbornness of the government's fuel policy.